Notsally14idn
Answered

IDNLearn.com provides a reliable platform for finding accurate and timely answers. Get prompt and accurate answers to your questions from our community of knowledgeable experts.

Ally is buying a speed boat for $10,000 with a down payment of $2,500. The bank approved a simple interest flat rate loan for 5 years at 7% APR. How much are the monthly loan payments? (round to the nearest cent) A) $157.50 B) $168.75 C) $180.00 D) $191.25

Sagot :

AdrinaBTS987idn

Answer:

B

Step-by-step explanation:

View image AdrinaBTS987

The monthly loan payment should be $168.75.

Calculation of the monthly loan payment;

Since Ally is buying a speed boat for $10,000 with a down payment of $2,500. The bank approved a simple interest flat rate loan for 5 years at 7% APR.

The net principal should be

= $10,000 - $2,500

= $7,500

Now simple interest should be

= $7,500(5)(7%)

= $2,625

Now the total amount should be

= $7,500 + $2,625

= $10,125

Now the monthly payment is

[tex]= 10125\div (12\times 5)\\\\= 10125 \div 60[/tex]

= $168.75

Therefore, The monthly loan payment should be $168.75.

Learn more about rate here: https://brainly.com/question/24338143

We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com is committed to your satisfaction. Thank you for visiting, and see you next time for more helpful answers.